The new EU Consumer Rights Directive aims at increasing consumers’ rights when contracts are concluded away from a retailer’s premises, such as purchases made online.
Moreover, it lays down common rules for businesses, making it easier to trade all over Europe. This new law entered into force on June 13 and applies to consumer contracts concluded after this date.
Online shoppers will not be obliged to pay charges or other costs if they were not properly informed prior to placing an order. From now on, consumers must explicitly confirm that they understand that they have to pay a price.
Therefore, they will be protected against ‘cost traps’ on the internet and not be tricked into paying for ‘free’ services. Furthermore, traders are to provide the total cost of the product or service, plus any extra charges.
When shopping online consumers are often offered additional options or services through pre-ticked boxes. For instance, while booking a flight, they may be offered travel insurance or batteries when buying an electronic product. If they do not want these extra services, they are often compelled to untick such boxes themselves. The new directive bans such pre-ticked boxes.
The period during which consumers can cancel a distance sales or an off-premises contract for whatever reason if they change their minds – commonly known as the cooling-off period – has been extended from seven to 14 calendar days.
Again, the seller is to clearly inform the customer about the cooling-off period. If not, the return period will be extended to a year. There will be a standard cancellation form for consumers to use, although using this form is not obligatory.
Consumers will also enjoy a right of withdrawal for solicited visits by the trader to their home. The right of withdrawal is extended to online auctions, such as eBay. However, goods bought in auctions can only be returned when bought from a professional (business) seller and not from a private seller.
The withdrawal period will start from the moment the consumer receives the goods. The rules will apply to internet, phone and mail order sales, as well as to sales outside shops.
Within 14 days of the withdrawal, traders are to reimburse consumers for the product; this includes the delivery costs. In general, the trader will bear the risk for any damage to goods during transportation, until the consumer takes possession of the goods. If retailers want the consumer to bear the cost of returning the goods, they are to clearly inform them of this beforehand.
Retailers must not charge more than the actual costs for use of credit cards or any other method of payment or telephone hotlines. Thus, a surcharge cannot be added and telephone calls must only cost the standard rate.
Information on digital content must clearly indicate its compatibility with hardware and software and the application of any technical protection measures, for example limiting the right for consumers to make copies of the content. Consumers will also have a right to cancel purchases of digital content, such as music or video downloads, but this is limited to the moment when the actual downloading process starts.
The law contains specific rules applying to small businesses and craftsmen, such as plumbers. There will be no right of withdrawal for urgent repairs and maintenance work. Member states may also decide to exempt traders who are requested by consumers to carry out repair and maintenance work in their home of a value below €200 from some of the information requirements.
The aim behind this law is to achieve a level of harmonisation of national consumer rules. Therefore, consumers can rely on the same rights, no matter where they shop within the EU.
Further information about the new EU Consumer Rights Directive can be obtained from the ECC’s website www.eccnetmalta.gov.mt. A fact sheet with Key Facts about the new directive prepared by the European Commission can also be accessed here.
odette.vella@mccaa.org.mt
This information has been provided by the European Consumer Centre Malta. ECC Malta is part of the European Consumer Centres Network.
Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.